SVB Financial in Santa Clara, California, plans to conduct an equity audit of a three-year-old program that's designed to foster diversity in the technology industry.
The parent company of Silicon Valley Bank has hired the law firm Paul, Weiss, Rifkind, Wharton & Garrison to conduct the review of its Access to Innovation initiative. Findings from the review are expected to be published during the third quarter of 2023, SVB said this week in a press release.
"The innovation economy generates wealth, opportunities and rewarding careers for many, yet women and Black and Latinx individuals are significantly underrepresented and underfunded in this sector of the U.S. economy. We want to use our influence to change that," SVB President and CEO Greg Becker said in a statement.
SVB is "choosing to engage" in the audit in order to "measure the impact of the efforts and make the most meaningful progress," Becker said. The audit process is scheduled to begin in October, a company spokesperson said in an email.
The audit's results will be used to "bolster the company's efforts to measure and communicate its impact on increasing inclusion in the innovation economy," SVB said.
SVB, which has $214.4 billion of assets, launched Access to Innovation in October 2019. The goal was to increase funding and provide other support for startups and venture firms started by women and people who are Black and Latinx.
SVB, which is a major lender in the world of Silicon Valley startups, has been providing regular updates on its internal and external diversity, equity and inclusion efforts.
During the first half of this year, the bank tapped a consulting firm to measure its employees' perceptions of its DEI efforts, a process that involved 1,900 employees.
The consulting firm found that SVB employees "see and appreciate" the company's efforts around DEI, but they also see "opportunities to increase representation for women and historically underrepresented groups in senior leadership," SVB said in its 2022
A sell-off of technology stocks this year has helped dissuade firms from going public. But Silicon Valley Bank’s parent company, which counts many tech firms among its clients, says the pullback hasn’t spread to smaller startups and the venture-capital funds that finance them.
As of late December 2021, nearly 60% of the company's 4,980 employees were white men and women, according to SVB's federal employment information form, which provides a demographic breakdown of the bank's workforce.
When the Access to Innovation program began, it had three legs: providing training and creating job opportunities for those without four-year degrees; increasing the number of women and minority founders, investors and board members at startups; and increasing funding for women and minority entrepreneurs by developing networks, partnerships and events.
"We see this assessment as a positive step we can leverage to strengthen our efforts and help define the future of the programs," Kay Matthews, the chair of SVB's board, said in a statement.
